Module 2: Negotiation Methods AMERICAN FEDERATION OF

Module 2: Negotiation Methods AMERICAN FEDERATION OF GOVERNMENT EMPLOYEES, AFL-CIO 1

Negotiation Methods Traditional Bargaining 2

Stages of Traditional Bargaining Preliminary Stage Establish negotiator identity Establish tone for negotiations Information Stage (Initial proposal/offer) Questioning Listening Offers Control Response 3

Stages of Traditional Bargaining Competitive/Distributive Stage (Claiming value of position/proposal) Value claiming Concessions Deal with adversity Power bargaining Closing Stage (Finalizing options of what can work) Less concessions Increased need for reciprocation Patience and calculated silence 4

Stages of Traditional Bargaining Cooperative/Integrative Stage (Maximizing the value of agreement) Advancing interests of all Parties Direct discussions Preserve credibility Explore all alternatives prior to Final Agreement Leave opponent thinking they got a good deal Get it in Writing 5

Effective Negotiation Techniques Preparation, preparation, preparation Establish rapport Attitudinal bargaining: reward cooperation, confront adversarial approach Control your response Find and use leverage 6

Negotiations Methods Interest-based Bargaining 7

What is Interest-Based Bargaining? Interest Based Bargaining (IBB) is an approach to collective bargaining that is designed to help parties express, understand and build agreements around shared interests, concerns or desires. 8

What is Interest-Based Bargaining? Interest based bargaining is a bargaining method aimed at “expanding the pie,” meaning each party can get a bigger slice without having one side gain at the expense of the other. Joint problem solving is intended to provide bigger slices for everybody. 9

What is Interest-Based Bargaining? IBB is also referred to as: Win-Win Bargaining Mutual Gains Bargaining Principled or InterestBased Negotiation Interest-Based Problem Solving Best Practice or Integrative Bargaining 10

What is Interest-Based Bargaining? The Difference Between Adversarial Bargaining and IBB In traditional “adversarial” bargaining, parties dig into their positions and exchange demands. In IBB, the parties focus on understanding the problem and identifying the interests that underlie each side’s issues, needs, and wants. 11

What is Interest-Based Bargaining? IBB is a process that enables traditional negotiators to become “joint problemsolvers.” IBB assumes that mutual gain is possible and that solutions which satisfy mutual interests are more durable. The parties should help each other achieve a positive result. 12

What is Interest-Based Bargaining? IBB has 3 distinct goals: 1) To reach a mutually desired and durable result 2) To reach agreement efficiently and fairly 3) To keep the relationship intact 13

Six Principles of Interest-Based Bargaining 1) Sharing relevant information is critical for effective solutions. 4) Focus on the interests underlying the issues. 2) Focus on issues, not personalities. 5) Focus on mutual interests, and helping to satisfy the other party’s interests as well as your own. 3) Focus on the present and future, not the past. 6) Options developed to satisfy those interests should be evaluated by objective criteria, rather than power or leverage. 14

What is required to be successful? Evidence of labor-management cooperation during the past contract term. Sufficient time remaining prior to contract expiration to complete the sequence of decision-making about IBB, training and application of the process. Willingness of the parties to fully share relevant bargaining information. Willingness to forgo power as the sole method of "winning.“ Understanding and acceptance of the process by all participants and their constituents. 15

IBB: Getting Started Training with IBB experienced facilitator Joint meeting of the participants and mediators to reach agreement on ground rules and protocols Bargaining begins with discussion of issues and interests 16

IBB: Training IBB begins with formal training by a facilitator. The participants must accept the principles and assumptions that underlie the process, and follow the steps and use the techniques during negotiations to be successful. 17

IBB: Joint Start-up Meeting With a decision to proceed, mediators facilitate a joint meeting of the participants to reach agreement on ground rules and protocols under which the bargaining will be conducted, an exchange of the issues to be negotiated, and steps for a transition to traditional bargaining if the IBB process breaks down. 18

IBB: The Process Problem solving is about resolving underlying interests. Interests are your needs, concerns, or desires behind a particular problem. The “why” behind the problem. Interests drive any 19

IBB: Interests vs. Positions Position: one party’s proposed solution to an issue; the how. A position statement: o focuses on a particular solution, o makes a demand, and o sets up confrontation before the problem has been clearly defined. 20

IBB: Interests vs. Positions Converting positions to interests: If a demand, solution, proposal, or position appears on your interest list, convert it to an interest by asking what problem it is trying to solve or what concern it is intended to address. 21

IBB Process Identify Issue (Issue Statement) Parties identify topic or problems Identify Interests Identify each side’s needs/wants and determine which are mutual Identify separate and/or conflicting interests Develop Options for solutions that involves interests Utilize joint brainstorming Refine list: eliminate duplicates, consolidate similar options Evaluate Options Feasible – legal, affordable, workable, understandable? Beneficial – satisfy important interests, better then what you have today? Acceptable – fair and equitable, pass Agency head review? Agree on Solutions Consensus – all members agree or “A decision everyone can live with” Write up the agreement 22

Techniques, Tactics & Strategies Interest-based Bargaining 23

IBB: Effective Negotiation Techniques Focus on issues – not personalities or the past Describe the problem, don’t accuse or assign motivation Focus on interests – not positions Understand interests – don’t judge them Defer evaluation during the optiongenerating stage Evaluate options with standards 24

IBB: Effective Negotiation Techniques Share Information Respect the role and responsibility of others – listen Be open to reasoned argument If you dissent – explain why and propose alternate solutions or suggest how to modify existing solutions Be willing to change your mind Sustain the relationship and process 25

IBB: Building Consensus Listen actively Encourage others to participate Share information Don’t change your mind to get along Yield to reason not pressure Listen to all ideas 26

IBB: Building Consensus Don’t bargain Work collaboratively Combine ideas creatively Don’t argue for an idea just because it’s yours Look for mutual gains approaches 27

INTEREST-BASED BARGAINING What are the challenges to applying IBB in your bargaining process? Can those challenges be overcome? 28